Coronavirus lockdown batters German services in April - PMI

Phil Smith, principal economist at IHS Markit, said the plunge in services business activity accelerated in April and that the rate of contraction was much worse than seen during the depths of the global financial crisis more than a decade ago. 'However, though manufacturing also suffered a record drop in output in April, the PMI surveys confirm that the decline in Germany's economy has been less severe than in France, Italy and Spain, where lockdowns have been more strict,' Smith added. Germany took a further step on the long road back to post-coronavirus normality on Monday, with museums and hairdressers reopening under strict conditions, churches opening their doors for worshippers and more car factories resuming work. But more than a month after all but essential social and commercial life was suspended to slow the spread of the novel coronavirus, the country's politicians are at odds over how far and how fast to move. Despite first steps to ease restrictions, there is still a lot of uncertainty among businesses about the timing of further relaxation of measures and the health of demand going forward, Smith noted.